Bitcoin is the New ‘Stablecoin’
With Bitcoin trading in tight price ranges over the last three months, it is safe to say the top-ranked cryptocurrency is the new stablecoin.
Narrowing Bitcoin Volatility
For all of Q3 2018, Bitcoin spent most of the time firmly in the mid $6,000 price range. In late July, it reached its highest price level for the quarter, at $8,400. August and September saw consecutive higher lows but lower highs.
In summary, BTC’s volatility is contracting and has reached a 17-month low which in many ways signifies a tipping point for the cryptocurrency. Many experts believe that a price breakout is imminent, but it is a coin toss as to the trajectory of this breakout.
One of the SEC’s biggest criticism against BTC and a major reason why it hasn’t approved a Bitcoin ETF has been the wild price swings. All of that is history now, so the question remains, will the SEC finally approve a Bitcoin ETF when it decides on the matter in late October?
Institutional Investors and Lack of Liquidity
In the first week of October alone, there were three different positive developments on the institutional front. These developments did not affect the price action signaling a lack of liquidity in the market. Bitcoin’s liquidity is down by almost 20 percent.
Beyond price action, experts like Spencer Bogart of Blockchain Capital believe that the influx of institutions like Yale will be the kindle the ignites the cryptocurrency bonfire. Another explanation for the lack of movement in the price charts is that there is an ongoing OTC consolidation.
Despite the current state of the market, big-money players remain bullish about the prospects of Bitcoin. In a recent survey by Fundstrat Global Advisors, the majority of institutional responders said they believed BTC would top $15,000 by the end of 2019.